2. Michonne makes the following stock purchases:

Date Stock Purchase (FMV)

1/3/X1 10 shares Apple $175K

1/3/X1 10 shares Berkshire Hathaway $160K

2/3/X1 10 shares Berkshire Hathaway $175K

6/28/X1 75 shares Kmart $100K

12/31/X1 15 shares Apple $225K

3/8/X2 25 shares Apple $275K

4/3/X2 10 shares Apple $175K

6/2/X2 75 shares Kmart $140K

12/3/X2 15 shares Apple $275K

3/8/X3 25 shares Apple $300K

a. On June 6, 20X3, Michonne calls her broker and tells him to sell 50 share of Apple stock, which the broker sells for $750K. What is Michonnes recognized gain or loss, if any, on the 6/6/X3 sale of Apple stock?

b. What would your answer be if on June 6, 20X3, Michonne calls her broker and tells him to sell 50 share of Apple stock purchased on 1/3/X1, 12/31/X1, 4/3/X2 and 12/3/X2, which the broker sells for $750K? What is Michonnes recognized gain or loss, if any, on the 6/6/X3 sale of Apple stock?

c. On February 1, 20X1, Michonne sales 10 shares of Berkshire Hathaway for $150K. What would Michonnes recognized gain/loss, if any, be on the sale?